Author: VanDyk Mortgage

March 7, 2023

Sales Fly-In Recap
Sales Fly-In is over, but the memories will last a lifetime.  And the glitter probably will too.  It got in EVERYTHING!  But the sparkle in the eyes of our sales team after hearing from our panelists, hugging their co-workers, celebrating each other’s successes, and learning from one another will last even longer.  A brief overview of some main points is below.  Look forward to more information soon~

• SpecUW: We are pleased to release SpecUW@vandykmortgage.com as a one-stop shop for our specialty in-house loans!  This new email will replace JumboLoanReview@vandykmortgage.com and NonQM@vandykmortgage.com to help streamline communications.  The SpecUW@vandykmortgage.com email may also be used for our Self-Employed + Rental Income Support Team to follow up on status, request an expedited review, or if there is a change with the previously calculated income.

REMINDER – What is available in-house?

• • NonQM – Bank Statement
  • NonQM – DSCR
  • NonQM – Non-Warrantable Condos
  • Jumbo Loans up to $2 million
• Total Expert: We have an exciting update to share with you regarding our office hours schedule. Starting next week, we will be moving Total Expert office hours to 2:30 pm EST. This is an excellent opportunity for you to get your questions answered or learn more about how your peers are utilizing the tool. Keep an eye on your inbox for more information, including a calendar invitation later this week.

• Broker Support + Broker Comparison: We’re happy to announce that BrokerSupport@vandykmortgage.com can be used for your brokered loan questions.

• • Check out our brand new  Broker Comparison Tool to review the programs available and who provides them. We’re working on finding a home for this link at VDMC.net – but until then, feel free to use this link to access the tool.

• SimpleNexus

• • As a reminder, LOs can find the link to share the SimpleNexus app with agents/realtors under Contacts > Partners. We have marketing material available for an agent Lunch & Learn – reach out to Production Support for a copy, we’re happy to pass along!

• Introducing: David Freas
  Those of you who attended the Sales Fly-in had the opportunity to meet our new National Underwriting Manager, David Freas!  David started with VanDyk Mortgage in February and has been learning all things VanDyk behind the scenes for the last month to best support and serve the team.

In his capacity as National Underwriting Manager, David will use his many years of experience in management, underwriting and problem solving to direct the daily needs of the Underwriting Department, which will include maintaining company service standards, loan quality, productivity, knowledge, training, growth and motivation. David will work closely with Lindsey, Conan, and other management to provide recommendations on escalations/exceptions, process and system improvements, as well as continuing the open line of communication between Sales and Underwriting.

• Introducing your Production Support Processing Manager: Mary Spirou

For those who have been with VanDyk for more than a few years, Mary Spirou’s may be a name you know well, and we are happy to announce she will be taking on the new role of Production Support Processing Manager, responsible for the oversight of loans processed under the corporate umbrella and focusing efforts for improving quality of all processing companywide.  We are excited to see her thrive in this new role.  Processors can look forward to hearing from her and more details will be coming soon.  Congratulations Mary!

• #VanDykDifference – Celebrate the Wins!
  This company is AMAZING!!!  Pretty sure we were among the first (maybe THE FIRST) lenders to implement, allow and CLOSE FHA loans with the new lower MIP amounts.  OH YEAH!  A BIG SPECIAL INCREDIBLE KUDOS and THANK YOU to Lindsey Kuhnle, Ryan VanDyk and Brad Chatel for the lightning-fast inter-department company-wide coordination of efforts to provide unparalleled service to our customers!  #WINNING
• Encompass Updates: Borrower Summary – VDMC + SCIF Disclosure
  The Encompass form Borrower Summary – 2021 will be replaced with Borrower Summary – VDMC the morning of Friday, February 24. The changes are detailed in the attached PDF. If you missed our training, check out the recording here.

In addition, the URLA has been updated to include the Language Preference field on URLA Part 1, and the Homeownership Education & Housing Counseling fields on URLA – Lender. These fields populate the Supplemental Consumer Information Form (SCIF), which will be included with disclosures starting on March 1, 2023. SimpleNexus will capture the response to these questions on the online application – any 1003 started in Encompass will need to have these questions completed manually.  A copy of SCIF form is attached.

• In-House DSCR: Submission Standards
  Attached you’ll find a Minimum Standards worksheet for in-house Bayview DSCR submission.  We have been receiving file submissions without the “Business Purpose and Non-Owner Occupancy Affidavit” (attached), which is required to be signed & notarized at the time of submission. Please confirm any Bayview DSCR submissions include this completed form.
• Employee Referrals – Reminder
  We have a company employee referral bonus policy:
  If a VanDyk employee refers an applicant to a position within the Company then the VanDyk employee will receive a bonus of $100 per referral on the following pay period if the below requirements and guidelines are met and followed:
  • New hire specifically names the VanDyk employee (first and last name) in their online application
  • VanDyk employee completes the Employment Referral form (available on VDMC.net) and submits it to the Human Resources Department (hr@vandykmortgage.com) before the applicant’s start date
  • New hire stays employed with VanDyk Mortgage for a minimum of 60 days; and
  • New hire does not have any documented disciplinary issues within the first 60 days of employment.
• Chenoa Updates
  Chenoa Fund has made updates to their Program Guidelines effective as of February 23, 2023.  With these updates, effective as of March 1, 2023, the mortgagee clause has been updated as follows:

CBC Mortgage Agency

C/O DocProbe

1133 Ocean Avenue

Mail stop code: DP7822

Lakewood, NJ 08701

 

Attached are both the updated Lending Guide as well as the CBC Mortgage Agency Announcement for a summary of the guideline updates.

 

• MetroDPA – Master Servicer Change
  Effective with new reservation on March 6th, 2023, all newly reserved Metro DPA loans will be originated under US Bank. US Bank will replace Lakeview as Master servicer on this date.
• AskUW + UW Submissions
  Please remember to include any communication received from AskUW with your UW Cover letter when you submit your file to underwriting for initial review.  This will ensure your underwriter is aware of any special circumstances up front and can escalate questions to their manager if needed.
• Essex/NHF Updates – LLPAs    
  Effective with locks on March 15th, 2023, Essex will be implementing the below Loan Lovel Price Adjusters (LLPA’s).
  • DTI > 50% = -.250
  • 660-679 = -.250
  • 640-659 = -.500
  • 620-639 = -1.000
  • 600-619 = -1.500
• Broker Partner Updates: REMN
  Great news! The REMN HELOC product compensation has increased from 1% to 2%, effective 2/23/23!  As a reminder, this product is not available in all states – see details at the REMN product page here and email Production Support with any questions.
• CALHFA Launch

Starting Monday, March 6th, California Housing Finance Agency (CALHFA) loans can be originated. When originating these loans please make sure that the correct loan program template is selected in Encompass.

To lock, please submit the attached CALHFA lock form to secondary by 4:30pm EST to lock same day. Loans must be conditionally approved and within 15 days of closing to lock.

We will not be offering High Balance, Homestyle, 203k, Energy efficient, or section 184 loans through the CALHFA program.

On the backend the branch will make .25% and must charge the rest in origination. At a minimum you will need to charge 2% in origination plus processing and UW fees. In total we are allowed to charge up to 3% in origination including processing and UW. Collect the max in fees to out to account for limited backend margin. Loans must still comply with ATR/QM fee limits. A $250 funding fee, $75 tax service fee, and $10 flood cert fee must be charged as well.

Please make sure that you verify your P&L can support the pay structure of this program prior to originating.

 

Agency Updates

Fannie Mae

Effective immediately, as Fannie Mae continues down the path of Modernization flexibilities when it comes to valuation, allowable alternatives to a 1004D Final Appraisal Inspection when there are completion or repair requirements (subject-to) in the original appraisal are implemented.  Please find attached both the FNMA Selling Guide Announcement 2023-02, FNMA Selling Guide section B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements, and Attestation Letters for both New/Proposed and Existing Construction.

Note: All Value accepted + PDR and Hybrid appraisals are placed with Clear Capital (via ValueLink/Appraisal Department) which is one of the five approved vendors for these products. (Did you know that 40% of the time, Fannie Mae Hybrid appraisals turn into Value Accepted + PDR at the lower cost of time?)

Freddie Mac

Bulletin 2023-5:  Freddie Mac is expiring the remaining temporary COVID-19 related underwriting requirements.  All Loan Product Advisor feedback messages referencing the temporary COVID-19 related requirements will be expired on May 1, 2023, but can be disregarded effectively immediately.

 

Bulletin 2023-6:  Effective for Mortgages with Settlement Dates on and after July 3, 2023, Non-Occupying borrowers may not be an interested party to the transaction (i.e. builder, seller, real estate agent or broker).

 

IMPORTANT REMINDER!!!  Any conventional Cash-Out Refinance utilizing Freddie Mac’s LPA is subject to a 12-month seasoning with note dates on and after March 7, 2023.

FHA

In February, we brought attention to two BIG items from FHA – Annual MIP Factor updates and 12-Month Positive Rental History impacting AUS findings.  We are updating these to include the following information:

FHA Annual MIP Factors – If you select the “Get MI”, you will need to manually override the Annual MIP Factor (monthly) to the 30 BPS reduced amount.  Encompass has not caught up quite yet with our awesome-ness!

FHA Positive Rental History – Below and attached are the DU Release Notes for Government Loans regarding FHA Case Assignment Dates and how this will impact your DU.  “No” means that the checkbox would NOT be selected at all in our Encompass environment.

 

VA

GREAT NEWS for our VA eligible borrowers!  Effective with loans closing on and after April 7, 2023, VA is reducing most VA Funding Fee charges.  Exhibit A attached includes the current VA Funding Fee charges and Exhibit B includes the updated VA Funding Fee charges.  We are including with this an updated VA Loan Limit Calculator for loans closing on and after April 7, 2023.

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Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings listed below, please respond to this message or email ProductionSupport@vandykmortgage.com

• Iron Sharpens Iron: Tuesday, March 21^st @ 11am Eastern
• VanDyk Mortgage Newscast: Friday, March 10^th @ 1pm Eastern
• Production Roundtable: Tuesday, March 28^th @ 1pm Eastern (National Respect your Cat Day)

FHA Disputed Derogatory

Did You Know that you MUST manually downgrade Approve/Accept classifications if the borrower has $1000 or more collectively in Disputed Derogatory Credit Accounts UNLESS the Credit is rescored to remove the dispute?

What is defined as derogatory?

1. ANY Non-Medical Collection AND
2. ANY Non-Medical Charge-Off AND
3. ANY Non-Medical account with a late payment in the last 24 months

We have verified with HUD whether the following statements on any disputed tradeline will need to be considered as a part of the $1000 or more:

Dispute Resolved – Customer Disputes After Resolution – YES

Dispute Resolved – Consumer Disputes After Resolution – YES

Dispute Resolved – Customer Disagrees – NO

Dispute Resolved – Consumer Disagrees – NO

IMPORTANT – You cannot supplement a disputed account to avoid manual downgrade.  The Credit Report MUST be rescored.

 

25 Points

February 3, 2023

• Sales Fly-in 

It’s less than a month away – have you finalized your Fly-in plans yet?   TODAY is the deadline to sign up for your preferred breakout sessions.  Please follow this LINK and sign up for your optional sessions by Friday, February 3rd. If you do not sign up by this deadline, breakout sessions will be chosen for you (don’t worry – they are ALL great options)!

 

• LLPAs

Effective with loans locked February 15th and beyond the new Loan Level Price Adjusters (LLPAs) grids will be active in OB. Any loan locked prior to February 15th will need to fund by April 14th to avoid the additional LLPAs applying to the loans. See attached for formal announcement, LLPA comparison Excel, and Fannie Mae LLPAs.

With this change, we will implement a requirement for proof of property taxes (tax cert/property tax bill) to our minimum UW submission standards when there is a subject property.  If a tax certificate is not available or the home is new construction, the loan can be submitted to UW if a 1.5% of appraised value factor is used to calculate property taxes.

• • Brad Chatel will be holding a Teams call on 2/8 at 2:30pm EST to discuss LLPA changes, LLPA waivers for AMI/FTHB, and other LLPA related items.

• Reverse Mortgage Updates    

We are now approved as a Principal Agent with FAR for Reverse Mortgages! The Reverse Team can assist you with questions, scenarios, proposals etc., and we are able to broker HomeSafe to FAR.  With AAG and FAR as our two in-house PA options for reverse mortgages and the ability to offer the conventional HomeSafe loan on the broker side again, we are looking forward to seeing an uptick in volume in the coming months. Contact your VanDyk Mortgage Reverse Team (Sophie Morales, Kristine Kuss, Adam Wilson) with questions or if you need assistance!

• eNotes

We will soon begin including eNotes in our hybrid eClosing packages. An eNote is an electronically signed version of our Note that can be eSigned via Simple Nexus. Including an eNote will not significantly change the hybrid eClose workflow, but will take us one step closer to a full eClosing!

 

• Update on Buydowns   

We have closed a handful of buydown loans and are making a minor adjustment to the closing packages for these loans:

• Per investor requirements, the buydown period payments will no longer be reflected on any documents outside of the buydown agreement and the first payment letter.  Be sure you discuss this with your borrowers to ensure they understand the buydown is temporary and will only be reflected on the initial buydown disclosure and first payment letter.  The closing documents including the CD will not reflect the bought-down rate or payment.

 

• Tennessee Housing Fee Updates

Effective with loans locked on or after March 1: Tennessee Housing is updating their fee structure. TN Housing loans will need to have 1% origination and $1,400 in customary fees charged. On the back end, the branch will make 1% plus the 1% in origination.

• Minimum Standards for Submission to UW: Updated!

Due to the implementation of the LLPA hits for DTIs over 40%, and to prevent any last-minute hiccups (such as needing to redisclose a fee increase), we are adding the Tax Bill/estimate as part of our Minimum Standards for Submission into Underwriting for any loans with a property address.  If you do not have a tax bill or estimate, please use 1.5% of the purchase price or value as a default in Encompass for properties outside of Nevada.  Nevada is defaulted to 1%.  This will be effective for all loans submitted into Underwriting on and after Monday, February 6, 2023.

 

• Condo Review Update

Before you email the Condo Department or submit a request for Condo Review, don’t forget to check the Condo Approval list in Howee to see if your project is already approved.  If the project is on the Fannie approved list, all we need is the master insurance (we don’t even need a questionnaire).  If you email the Condo Department with documentation that is not required for the review and it “opens a can of worms,” we cannot close the can without additional review and documentation.

 

• Broker Loan Compensation

VanDyk has contractual compensatory agreements with the lenders we broker loans to. When locking your loans, you will need to ensure the minimum compensation is met. This document will help you understand the difference between Lender and Borrower paid compensation, the two options given by the lenders in their various pricing engines. Please review Locking a Brokered Loan – Compensation, attached, for more details.

• Income Documentation Updates

For applications dated on or after 1/31/2023, OR loans with a note date on or after 2/15/2023: 2022 W2s OR a Written VOE will be required.

• • Final VOEs are now required prior to CTC:  Updated Final Verbal VOE Cheat Sheet is attached.
    Tax Transcripts Cheat Sheet:  Updated version for 2023 is attached.
  • Income Worksheet – LTK: Updated within Encompass to include tax year 2022.
  • LoanBeam: LoanBeam will begin accepting 2022 tax documents starting Monday, February 6.

We’ve also created a cheat sheet to reference when you’re looking for help calculating income on a file. Please see the attached PDF: Income Calculation Help.

• Borrower Summary 2023 Update

Encompass has some updates slated for release on February 16th which will impact this form.  We will roll out our updated Borrower Summary 2023 Encompass form and hold training sessions after this release date – watch your email for invitations and additional information.

 

• Broker Partner Updates

Champions: Champions is a borrower paid-comp only outlet, but are still going to hit us with an EPO fee if a loan pays off with 180 days of funding. If you are using their Ally No Ratio program, the EPO extends to 360 days from funding. Champions wants to make it clear that their Ally product is not to be used for short term funding, which is the reason for the 360 day timeframe.

Flagstar: Flagstar updated their Doctor Program to include additional licenses/occupations in the medical field. Please see the attached Broker Update email with more details about this program!

Go Mortgage: Go Mortgage, one of our One Time Close Construction outlets, requires all team members to complete a training prior to receiving credentials to log in. To make this easier, we have scheduled two sessions with Go Mortgage that you can join in order to receive your credentials. Invitations were sent on Friday, 2/3 – if you did not receive and would like to attend, please email ProductionSupport@vandykmortgage.com

• SimpleNexus Update: Soft Credit Pulls

The highly anticipated day has arrived!  Once your access is set up, you will be able to obtain a 1-bureau soft pull in Simple Nexus with the click of a button.  Instead of accessing the Sarma website and entering borrower data manually, simply locate your borrower’s application in SN and click the “Soft Credit Check” button. Easy!
Important note: You will not have the ability to pull both soft AND hard credit within SimpleNexus – it is one or the other. Starting today, Production Support will be working through getting access to users, and will be reaching out to your branch manager once this feature is ready for your team.

• Speaking of Soft Pulls…

Please remember: soft pulls are not imported into Encompass or used to run AUS. There is no liability report to be imported. They are not to be used for qualifying. If you have any questions, reach out to Production Support.

• SimpleNexus: Partner Portal

Just a reminder that Loan Officers have a “share” link available to get connected to realtors/agents within SimpleNexus. You can find this link under Contacts > Partners. We attached an overview of what the agent sees on the SimpleNexus side, and you can watch a demo of the Partner portal here. If you have any questions, reach out to Production Support.

 

• UDM Monitoring Update

If you ever run into the issue where your UDM is not monitoring, and you do not have time to wait for it to turn on and start running to meet your ECD, we have an option to provide a no FICO tri-merge “refresh” soft pull within 10 days of closing.  For additional details or assistance, reach out to Production Support.

• Appraisals in Depreciating Markets

For Citi Jumbo loans and NewRez NonQM files, appraisals that come back with a property value showing “declining”/Declining Market, the maximum LTV/CLTV will be reduced by 5%. We anticipate other investors may follow suit – we will pass along updates as we receive them.

• What is Fraud? A Message from Patty Lacey

Mortgage fraud – including occupancy and income fraud – has become more prevalent over time and is a particular concern during an economic recession. Upheaval in housing markets, homeowners facing financial difficulties and unscrupulous persons looking for easy money all contribute to a climate in which mortgage fraud may occur. Current statistics indicate that 1 in every 109 mortgage applications show indications of fraud. For more details, review the “What is Fraud” attachment.

Agency Updates

Fannie Mae

• IMPORTANT! Fannie has followed suit to Freddie Mac!  Cash-Out Seasoning is changing to 12-months for loans with note dates on and after April 1, 2023.  This will be measured by the note date of the existing loan to the note date of the new loan.  We will be implementing this for Note Dates on and after March 27, 2023 to allow a buffer.  (As a Reminder, Freddie Mac Cash-Out Seasoning changes to 12-months for loans with note dates on and after March 7, 2023.)
• For additional Fannie Mae enhancements, see attached Selling Guide FNMA SEL 2023-01.

Freddie Mac

• Freddie Max has expanded the appraisal eligibility requirements to allow desktop appraisals for certain HomePossible Mortgages that are purchase transactions.  Follow your LPA Findings on appraisal requirements – Your aiUnderwriter will help with this, too!

FHA

• FHA has updated the Handbook 4000.1 in multiple areas of Section II – Origination through Post-Closing/Endorsement.  Attached is a quick comparison of the old vs new.  In addition to this, the Form 1004MC (Market Conditions Addendum) has been eliminated to align with the GSEs and VA.  For updated version of the 4000.1 HUD Handbook, visit https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh-011823.pdf. All updates are highlighted.

VA

• 2023 Loan Limit Calculator is attached

Upcoming Events and Reminders

If you need an invitation to one of the Zoom meetings listed below, please respond to this message or email ProductionSupport@vandykmortgage.com

• Iron Sharpens Iron: Tuesday, February 21 @ 11am Eastern
• VanDyk Mortgage Newscast: Friday, February 10 @ 1pm Eastern
• Production Roundtable: Tuesday, February 21 @ 2pm Eastern

 

35^th Anniversary Events

March 2 – 4, 2023 | Annual Sales Fly-in

Occupancy Check!

Did you know that investors are being scrupulous about checking on the borrowers after closing to ensure they are occupying the home?

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Employment Validation – Self-Employed – Fannie

Did you know you can receive Self Employment income validation in Fannie Mae’s DU when you have obtained tax transcripts from Dataverify?

Your SE income can also be validated in Freddie Mac’s LPA, if your LoanBeam is run though the Encompass interface.  Awesome!

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Credit Orders & Borrower Solicitation

As many teams are already aware, the amount of solicitation that borrowers receive after their credit is pulled has drastically increased.

It’s important to note that Sarma is not selling leads – brokers and lenders are buying leads from the bureaus. The only way to get out of not getting calls is to have the borrowers opt-out by visiting www.optoutprescreen.com  or calling 888-5OPT-OUT (888-567-8688). It does take about 5 days for this to be set up.
Some teams are taking the approach of doing a 1-bureau soft pull, and then having the borrower opt-out prior to doing the hard pull. Soft pull inquiries cannot be sold.

 

25 Points